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StuDocu is not sponsored or endorsed by any college or universityEXAM Notes KTH (sale and lease notes)Specific contracts (University of Pretoria)StuDocu is not sponsored or endorsed by any college or universityEXAM Notes KTH (sale and lease notes)Specific contracts (University of Pretoria)Downloaded by Itumeleng Sibanda ([email protected])lOMoARcPSD|8594330
Bianca & JamiePart 4: Purchase and SaleChapter 13:General introduction to law of Purchase and SaleTheme 2: EssentialiaHow to determine whether it is a contract of sale or a contract of exchangewhen the payment consists of a combination of money and other goods:True intention of parties, irrespective of value of money or goodsIf intention cannot be determined, then value of money in relation to value ofgoods must be determined(money higher value = contract of sale)(goods higher value = contract of exchange)If money and goods are of equal value, it will be contract of sale as apresumptionexists that parties intend to conclude a contract of sale ratherthan a contract of exchangeMountbatten Investments v Mahomed:Facts:M (Pty) Ltd sold a 1986 model BMW to M for R58 535M paid by means of R14 535 cash and the balance by trade in of anothervehicle also a BMWThrough an innocent misrepresentation, M represented to Mount that thetrade-in vehicle was a 1985 model, but it was in fact a 1983 model.Mount relied on actio quanti minoris to claim reduction of the price from M(diference between trade-in values of a 1985 and a 1983 model BMW)Judgement:Court has to frst determine nature of contract, court took the followinginto account to determine if it was a contract of sale or of exchangeoWhere either party delivers a thing in exchange for another acontract of barter existsoWhere the purchase price consists partly of money and partly ofpayment in kind, nature is determined by true intention and theagreement can either be a sale or a barter irrespective of the valuesof cash and kindoWhere there is doubt regarding intention, the respective values ofcash and kind must be comparedoWhere value of cash payment is higher a contract of sale came intobeingoWhere the money and the thing are equal, a contract of sale isdeemed to have come into being since parties are presumed tohave concluded a contract of sale rather than barterCourt held in this case trade-in that it was not sold nor bartered. Result thecourt came to conclusion that Mount could not rely on the actio remedybecause it is only available to contract of sale and barter and not that of atrade-inCourt accepted advanced argument by the defendant MoMount’s cause of action was innocent misrepresentationoTransaction did not create a contract of sale nor barter andoOn the grounds of innocent misrepresentation, Mount was notentitled to reduction of purchase price under actio quanti minoris1Downloaded by Itumeleng Sibanda ([email protected])lOMoARcPSD|8594330

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Term
Fall
Professor
S van wyk
Tags
Leasing, Contract Law, Leasehold estate, Rental agreement

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